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Mill Creek, Independence: Home Values Double Amid Fluctuating Ownership Rates
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Mill Creek, a neighborhood in Independence, Missouri, has experienced significant changes in homeownership rates and property values over the past decade. These changes reflect broader economic trends and local market dynamics. The percentage of owner-occupied homes in Mill Creek has fluctuated since 2013, with a general trend towards increased homeownership until recent years. In 2013, 75% of homes were owner-occupied. This rate peaked at 80% in 2018 and 2019 before declining to 71% in 2022. Concurrently, average home prices in the neighborhood have shown substantial growth. In 2013, the average home price was $68,094. By 2022, this figure had risen dramatically to $173,447, representing a 154% increase over nine years.
Federal interest rates have played a significant role in shaping homeownership trends in Mill Creek. The period from 2013 to 2016 saw historically low interest rates, hovering around 0.1%. During this time, homeownership rates in Mill Creek increased from 75% to 76%. As interest rates began to rise in 2017, reaching 1.83% by 2018, homeownership in the neighborhood continued to climb, peaking at 80% in 2018 and 2019. However, the sharp increase in interest rates to 1.68% in 2022 coincided with a decline in homeownership to 71%, suggesting that higher borrowing costs may have impacted affordability for potential buyers.
Renter percentages in Mill Creek have inversely mirrored homeownership trends. The proportion of renters decreased from 25% in 2013 to a low of 20% in 2018 and 2019, before rising to 29% in 2022. Average rent prices have shown volatility over this period. In 2013, the average rent was $1,117. It peaked at $1,142 in 2015 before declining to a low of $746 in 2019. By 2022, average rent had rebounded to $947, still below the 2013 level. This fluctuation in rent prices, coupled with changing homeownership rates, suggests a complex interplay between housing affordability and population dynamics in the neighborhood.
In 2023, average home prices in Mill Creek reached $184,615, continuing the upward trend seen in previous years. This increase occurred despite the Federal Reserve raising interest rates to 5.02% in 2023. As of 2024, average home prices have further climbed to $191,466, with interest rates at 5.33%. These figures indicate a resilient housing market in Mill Creek, maintaining growth even in the face of higher borrowing costs.
Looking ahead, predictive models suggest that average home prices in Mill Creek may continue to appreciate over the next five years, albeit at a potentially slower rate due to higher interest rates. Average rent prices are also expected to increase moderately, reflecting ongoing demand for rental properties in the area.
In summary, Mill Creek has experienced significant growth in average home values over the past decade, with homeownership rates peaking in 2018-2019 before recent declines. The neighborhood has demonstrated resilience in its housing market, with prices continuing to rise even as interest rates have increased. The interplay between homeownership rates, rent prices, and broader economic factors will likely continue to shape the housing landscape in Mill Creek in the coming years.
